Massive Losses in F&O Trading
SEBI has released new data for the financial year 2025 regarding the Futures and Options (F&O) segment, and the numbers are alarming (see image below).
Source : Sumit on X
Individual traders incurred losses amounting to ₹1.05 lakh crore in just one year. Of the 96 lakh traders analyzed, a staggering 91% ended up losing money. The average loss per trader was around ₹1.1 lakh, although individual losses may vary significantly.
A Growing Trend of Losses
What is particularly concerning is not just the sheer number of traders but the consistency of losses. In FY22, there were 42 lakh traders. This number increased to 58 lakh, then to 86 lakh, and now it has reached 96 lakh. Despite the rising participation, approximately 90–91% of traders have lost money each year. This trend indicates that as more people enter the F&O market, the likelihood of making a profit remains low. In fact, total net losses have escalated from ₹40,000 crore in FY22 to ₹1.05 lakh crore in FY25.
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F&O Trading Is Not for Everyone
These statistics clearly indicate that F&O trading is not suitable for casual investors. It’s akin to rolling dice in a casino—unless one possesses professional expertise, the chances of success are minimal. Many individuals approach F&O trading casually or treat it as a hobby. For those who set aside small amounts purely for enjoyment, the risk might be manageable. However, for individuals who develop a habit or repeatedly incur significant losses, it can pose a serious problem.
Time to Reconsider Your Strategy
If losses continue year after year, it might be wise to reassess your approach. Trading is not suitable for everyone; it demands a particular mindset and skill set. While some may cultivate these skills over time, many might find that long-term investing is a better alternative. A ‘slow and steady’ investment strategy, which allows wealth to accumulate over the years, could prove to be a more reliable path.
Focus on Careers and Long-Term Growth
Most traders in this sector are believed to be young individuals eager to accumulate wealth quickly. Instead of focusing all their energy on high-risk trades, dedicating time to building a stable career, running a business, or developing new skills might be a more prudent strategy. Investing small amounts regularly in long-term portfolios could yield more rewards than attempting to make quick profits through F&O trading.
What are your thoughts on the increasing trend of F&O trading? Have you had similar experiences? Share your views in the comments below! If you found this blog useful, don’t forget to SHARE it with your friends!
